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In lugnet.market.theory, Todd Thuma wrote:
> I read a similar article in another publication about a month ago and it upset
> me then. I think it was in Newsweek.
>
> Anyway, it upset me because the reporter must have been an idoit! The phenomenon
> of the "loss leader" is a myth! Yes a Myth!
Snipped a lot of good info. Most of which I agree with.
However I do NOT agree that there is no such thing as a loss leader.
Case in point. I went to Best Buy on Black Friday. They were selling DVD players
for 19 dollars after rebate. Many would argue that is a loss leader, but it's
subject to analysis that it isn't, I guess.
However, they were ALSO selling stacks of 100 blank CDs for 25 dollars with a 25
dollar rebate... meaning that you got the stack for the price of a stamp, which
Best Buy doesn't get the benefit of. SOMEBODY is losing money there, either BB
or the CD manufacturer since the net revenue they get is 0, (but only if
everyone fills out the rebate... I guess you can argue that they make their
money on those people who don't, they cover everyone.)
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Message has 1 Reply:
 | | Re: New York Times on Walmart Pricing
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| (...) I once (politely) complained to a Best Buy employee about their fondness for rebates. He agreed, and said that customers claim only about 40% of possible rebates. On one level that irks me, but in another sense I am glad to have that 60% (...) (21 years ago, 26-Dec-03, to lugnet.market.theory)
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